Overview of Other State and Federal Work Incentives & Programs

1. Overview of Other State and Federal Work Incentives & Programs Hosted/Facilitated by: Miranda Kennedy with the NDI Technical Assistance Team Presented by: Kevin Nickerson and Mary Lynn ReVoir with the NDI Technical Assistance Team U.S. Department of Labor 2013 Ticket/EN Series

2. Disability Employment Initiative (DEI) • DEI Projects at the state level and/or local level participating LWIBs are required to become Employment Networks under Social Security Administration’s Ticket to Work Program. • Training and Technical Assistance to DEI Projects in attaining Employment Network status and implementing effective EN operations is provided under U.S. DOLETA contract with NDI Consulting, Inc. and the National Disability Institute (NDI). • Evaluation of the impact of the DEI Projects implementation and outcomes as Employment Network will be provided under U.S. DOL ODEP contract with Social Dynamics.

3. Learning Objectives Upon completion of this training webinar, DEI grantees and participants and partners from the public workforce system will have the following: • A better understanding of programs and services (both State and Federal) that can support the efforts of our Ticket holders • An understanding of how these Work Incentives can assist in job placement, and retention • An understanding of Tax Incentives available for businesses and how these are connected to Ticket to Work

4. Ticket/EN Subject Matter Expert Kevin Nickerson E: knickerson@ndi-inc.org P: (607) 272-7570 Ext. 136

5. Agenda • Overview of expanded Medicaid eligibility through Medicaid Buy-In programs and Section 1619(b) • Overview of two important, supporting Housing and Urban Development (HUD) programs: Earned Income Disregard, and Family Self-Sufficiency programs • Overview of Tax Incentives

6. Why Consider Other Programs? • SSA benefits provide a sense of financial stability • Ticket to Work is about Self-Sufficiency so building the Financial Stability of the Ticket Holder should be part of the plan • Letting go of SSA is more easily palatable with a plan for financial stability • View the DEI archived training to learn more about financial stability and asset building programs at: www.dei-ideas.org • Like SSA benefits, other federal and state benefits are often tied to resources and income. 6

7. Medicaid Buy-In Program

8. Medicaid Buy-In Medicaid Buy-In programs allow states to expand Medicaid coverage to workers with disabilities who are not typically eligible for Medicaid due to their income and assets States design their Medicaid Buy-In program (within certain parameters) to meet their State’s unique needs, resources, and objectives To be eligible for the Buy-In program, an individual must have a disability (as defined by the Social Security Administration), have earned income, and meet any other financial eligibility requirements established by their state

9. Medicaid Buy-In State rules vary regarding eligibility for Medicaid Buy-In programs, however, the purpose of MBI is to allow for expanded access to medical coverage for working individuals with disabilities Some states have evolved program eligibility over the years, to exclude retirement accounts from counting as a resource (i.e. NY, Iowa, CA, and others) Resource limits for MBI are generally higher than for Medicaid, through other avenues of eligibility

10. Medicaid Buy-In • Remember that this can be a resource for customers with disabilities that may NOT be receiving SSA benefits, however, meet similar disability criteria (a separate state disability determination process is necessary) • This program targets individuals who receive SSDI benefits, since SSI recipients generally have Medicaid already • When to use: MBI can be a powerful aide for Ticket holders in managing health care costs, and in many cases, eligibility for this program can be an incentive to return to work (i.e. if Ticket holder currently has a Medicaid “spend-down”) • This program should be explained to Ticket holders as a part of developing your employment plan

11. Medicaid Buy-In • For further information, see the following sites: • Case Studies from 9 States, by U.S. Department of Health and Human Services: http://aspe.hhs.gov/daltcp/reports/eicasest.htm • Policy Research on Medicaid, by Mathematica: http://www.mathematica-mpr.com/disability/medicaidbuy-in.asp • You should research your state specific Medicaid Buy-In program for specific eligibility details Check with Your State Medicaid office to learn more about Buy-In

12. Expanded Medicaid Coverage for SSI Recipients: 1619(b) 12

13. SSI & Medicaid Eligibility Remember that for SSI Recipients, Medicaid coverage may be maintained, even when receiving NO cash benefits, due to earned income, through 1619(b) States have individual income thresholds under 1619(b) This Work Incentive can be an empowering tool when assisting SSI recipients in the return to gainful employment, just as Medicaid Buy-In is

14. Understanding 1619(b) • Under Section 1619(b), Former SSI Recipients Can Still Maintain Medicaid: • The person must lose eligibility for SSI cash benefits due to excess earnings, or, because they exceed the “break-even point” • A single person living alone in 2013 will lose SSI cash benefits if gross monthly wages are $1,679 or higher • A person living with others in 2013 will lose SSI cash benefits if gross monthly wages are $1,551 or higher • NOTE: Figures based on Federal Benefit Rate only • The person’s disability must continue

15. Understanding 1619(b) • To find out your states 1619(b) threshold, see:https://secure.ssa.gov/poms.nsf/lnx/0502302200 • Note that some states use Federal SSI eligibility for automatic connection to Medicaid eligibility, when individuals receive SSI, these are 1634 states • Some states use their own criteria • Some state uses at least one criterion that is more restrictive than the SSI program, these are 209(b) states • From SSA’s Benefits Planning Query (BPQY) Handbook, see:http://www.ssa.gov/disabilityresearch/documents/BPQY_Handbook_Version%205.2_7.19.2012.pdf

16. Housing and Urban Development (HUD) Programs 16

17. HUD Programs • HUD offers many (over 25) programs to support individuals in transitioning to work • www.huduser.org/publications/pdf/w2w.pdf • Programs vary by Public Housing Authority (PHA) • Two important programs that can support Ticket to Work efforts: • Family Self-Sufficiency (FSS) • Earned Income Disregard

18. HUD Earned Income Disregard • HUD Earned Income Disregard provides previously unemployed, individuals with disabilities an opportunity to return to work, with no increase in rent, for a limited period of time • Applies to All Tenants in Public Housing Programs, and to Tenants with Disabilities in Four Additional Types of Housing Subsidy Programs: • The Section 8 Housing Choice Voucher Program (not project based Section 8) • Some Supportive Housing Programs • Home Investment Partnerships Program • Housing Opportunities to Persons with AIDS Program See NLS publication: http://www.nls.org/files/Housing%20Hotlines/HUD_Earned_Income_Disregard.pdf

19. HUD Earned Income Disregard • Tenant must be “previously unemployed”, for at least one year prior to new employment, which means: • a person must have earned, during the 12 months prior to starting a job, no more than would be received for 10 hours of work per week for 50 weeks at the minimum wage Benefits: • First 12 months of employment allows for 100% disregard of new wages due to employment • Second 12 months of employment allows for 50% disregard of new wages due to employment NOTE: 24 months of earned income disregard must be used within 48 consecutive months

20. Family Self-Sufficiency (FSS) Program • Authorized by the National Affordable Housing Act of 1990 to assist residents of public housing and participants of the Section 8 Housing Choice Voucher program • A voluntary program • Residents sign a 5 year contract with the Public Housing Authority (PHA) which outlines the steps both the PHA, and family agrees to work toward with the goal of financial independence

21. Family Self-Sufficiency (FSS) Program • An important aspect of FSS is the support that participants receive in developing a plan that leads to self-sufficiency • Typical supports that participants of FSS would receive, might include: • Job-readiness skills and employment opportunities • Building plans that identify barriers and solutions for success • Financial Literacy training and goal setting • Case management and referrals to local resources • Establishing good credit

22. FSS Program: How Does it Work? • Residents living in public housing or receiving Section 8 Housing Choice Vouchers, required to pay 30% of their adjusted income for rent and utilities • Although this provides for relatively low rent costs, the return to work can increase this cost, creating a potential work disincentive • FSS allows participants to save money in an interest-bearing escrow account

23. FSS Program: How Does it Work? Cont. • An escrow credit, which is calculated by the PHA, and which is determined by the increased earnings of the participating family, is deposited in the FSS account, rather than towards increased rent • As earnings of participants increase, so do their rents, however, even though paying more in rent, an amount equal to the increase in rent is deposited into participants’ escrow account each month • Note: Housing Authorities are reimbursed by HUD, to cover lost rent, for individuals in FSS

24. When to Utilize FSS Program Work Incentive? • Because FSS benefits those who have increases in earnings, timing of when to enter FSS can make a difference • It is advantageous for your customer to work closely with their FSS Coordinator, to determine whether to use EID, or FSS, and if both, in which order (cannot be used concurrently) • To find your local Public Housing Authority, HUD has a contact list for each state, located here: http://portal.hud.gov/hudportal/HUD?src=/program_offices/public_indian_housing/pha/contacts

25. Ticket/EN Subject Matter Expert Mary Lynn ReVoir P: (515) 975-2344 E: mlrevoir@ndi-inc.org

26. Tax Incentives 26

27. Tax Incentives • Available to eligible businesses for recruitment and hiring of persons with disability • Some Tax Incentives can apply to customers with disabilities • Tax Credits or Tax Deductions • May be federal or state / some can tap into federal and state concurrently • May require eligible business size or tax status

28. Factors to Consider • This is not a tool that will be used with all Ticket holders, as it is not in the best interest, in every case to disclose disability • Explain to the Ticket Holder so they decide as part of disclosure and marketing self • Some employment applications include information asking if member of eligible targeted group

29. Wage Related Tax Incentives 29

30. What is Work Opportunity Tax Credit (WOTC)? • WOTC authorized by the Small Business Job Protection Act of 1996 (P.L. 104-188), is a federal tax credit that encourages employers to hire targeted groups of job seekers by reducing employers' federal income tax liability. • It can help to tip the scales in cases when an employer is deciding which qualified candidate to hire. • For Job Developers, it can be an effective tool in marketing qualified candidates to local employers

31. News Regarding WOTC • On January 3, 2013, the President signed into law the American Tax Payer Relief Act of 2012, which authorizes an extension of the WOTC program: • Continues authorization of all veteran target groups (including those implemented under the VOW to Hire Heroes Act) until December 31, 2013 • Retroactively reauthorizes all WOTC non-veteran target groups, from December 31, 2011 to December 31, 2013 • Retroactively reauthorizes Empowerment Zones, which determines eligibility for the summer youth target group, from December 31, 2011 to December 31, 2013 NOTE: Information from USDOL, for more information, see: http://www.doleta.gov/business/incentives/opptax/whatsnew.cfm

32. Who is Eligible for WOTC? • Individuals from following specified targeted groups are eligible: • Qualified TANF recipients • Qualified Veterans receiving Supplemental Nutrition Assistance Program (SNAP) • Qualified unemployed Veterans (under the Vow to Hire Heroes Act of 2011) Fact sheet found here: http://www.doleta.gov/business/incentives/opptax/PDF/veterans_fact_sheet12_1_2011.pdf • Qualified Ex-Felons • Qualified Designated Community Residents (residing in an Empowerment Zone)

33. More Targeted WOTC Groups • Individuals from specified targeted groups are eligible for this tax credit: • Qualified Vocational Rehabilitation Referral (person who is has Ticket assigned to SSA approved EN) • Qualified Summer Youth • Qualified SNAP recipient (ages 18-39) • Qualified SSI Recipient • Qualified Long-term Family Assistance recipients NOTE: Ticket to Work participants are eligible for WOTC

34. How Does WOTC Work? • There are variations from group to group in maximum credits available • Full Rate: In general, an employer is eligible for 40% of the first $6,000 in wages, or a $2,400 tax credit for the first year of employment • Need to be retained a minimum of 400 hours • Eligible for up 25% of the first $6,000 in wages, or $1,500 for individuals retained for a minimum of 120 hours of employment

35. How Employers Apply for WOTC? • Paperwork needs to be submitted to state workforce agency, NOT to USDOL • Seek information from state WOTC contact • Form 9061 to determine eligibility for applicant • Form 8850 signed by both the employer and applicant post hiring within 28 days • Form 9062, a conditional certification, is used when a job ready applicant has been identified by a participating agency as an eligible member of a target group (such as VR) NOTE: Filing all appropriate paperwork is the employers responsibility

36. Accessibility Related Tax Incentives 36

37. Federal Architectural & Transportation Tax Deduction • Businesses may take an annual tax deduction of up to $15,000/year for expenses incurred to remove physical, structural, and transportation barriers for persons with disabilities at the workplace. • Examples cost of: providing accessible parking spaces, ramps, and curb cuts; providing telephones, water fountains, and restrooms which are accessible • Additional information - Federal Office of Chief Counsel, IRS

38. Disabled Access Tax Credit • Federal tax credit – IRS Code 44 IRS Form 8826 • For small business • In the previous year revenue maximum of $1 million or had 30 or fewer full-time employees • Small businesses may take an annual tax credit for making their businesses accessible to persons with disabilities • Examples of costs: sign language interpreters for employees or customers who are hard of hearing; readers for employees or customers who have visual impairments; the purchase or modification of adaptive equipment

39. SummaryNext StepsQ&A

40. Summary • In today’s presentation we covered the following: • Other Federal & State Work Incentives • Medicaid Buy-In • 1619B Work Incentive • HUD Programs including Family Self Sufficiency • Available Tax Incentives and Factors to Consider • Work Opportunity Tax Credit • Two Accessibility Related Tax Incentives

41. Next Steps • Join us for Part 6 of our Ticket to Work series • “Ticket Assessment and Individual Work Plans” on Thursday, April 11thfrom 3pm to 4pm EDT • DEI grantees, partners and members of the public workforce system will come away from this training with the following: • Have an understanding of all the elements involved in assessing Ticket holders • View a common customer flow of identifying Ticket holders and the decision making process of assigning a Ticket • Learn about options available to workforce EN for IWP formats • Obtain an overview of the available workforce IWP template

42. Questions/Comments If you have a comment or question you can: A: Submit it to the host in writing via the Chat or Q&A Box to the right, or… B: Click on the “raise hand” icon to have your line un-muted and ask your question/make your comment.

43. Contact Information Kevin Nickerson NDI Technical Assistance Team knickerson@ndi-inc.org Phone: (607) 272-7570 Ext. 136 Mary Lynn ReVoir NDI Technical Assistance Team P: (515) 975-2344 E: mlrevoir@ndi-inc.org